The importance of encouraging subsidiary activities to generate additional income/employment for marginal farmers has been discussed. Financial costs of and returns from one such activity - swine rearing on a small scale - with and without subsidies from a developmental agency have been worked out. A sensitivity analysis on the expected costs and returns has been carried out. The material may be used to discuss: 1) the art and science of project formulation from the enterprise angle, and 2) the policy issue as to whether subsidies be provided to the marginal farmers on some of the new enterprises.